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Marketing Research An Applied Orientation Global Edition Sixth Edition Naresh K. Malhotra Georgia Institute of Technology Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

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Marketing ResearchAn Applied OrientationGlobal EditionSixth Edition

Naresh K. MalhotraGeorgia Institute of Technology

Boston Columbus Indianapolis New York San Francisco Upper Saddle River

Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto

Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

Contents

Foreword 21Preface 23Acknowledgments 29Author Biography 32

PART I Introduction and Early Phasesof Marketing Research 33

Chapter 1 Introduction to MarketingResearch 34Objectives 34

Overview 35

Definition of Marketing Research 39

A Classification of Marketing

Research 39

The Marketing Research Process 41

Step 1: Problem Definition 41Step 2: Development of an Approach to the

Problem 41Step 3: Research Design Formulation 42Step 4: Fieldwork or Data Collection 42Step 5: Data Preparation and Analysis 42Step 6: Report Preparation and

Presentation 42 ,

The Role of Marketing Research in

Marketing Decision Making 43

Marketing Research and Competitive

Intelligence 45

The Decision to Conduct Marketing

Research 46

The Marketing Research Industry 46

Selecting a Research Supplier 50

Careers in Marketing Research 51

The Role of Marketing Research in MISand DSS 53

The Department Store Patronage

Project 54

International Marketing Research 55

Ethics in Marketing Research 57

SPSS Windows and SAS 59

Summary 60 • Key Terms andConcepts 61 a Suggested Cases, VideoCases, and HBS Cases 61 • Live Research:Conducting a Marketing ResearchProject 61 • Acronym 61Exercises 62 • Internet and ComputerExercises 62 • Activities 62 • DellRunning Case 62

• VIDEO CASE 1.1 Burke: Learningand Growing Through MarketingResearch 63

Chapter 2 Defining the MarketingResearch Problem andDeveloping an Approach 66Objectives 66

Overview 67

Importance of Defining the Problem 68

The Process of Defining the Problem and

Developing an Approach 69

Tasks Involved 69

Discussions with Decision Makers 69Interviews with Industry Experts 72Secondary Data Analysis 73Qualitative Research 73

Environmental Context of the

Problem 74

Past Information and Forecasts 75Resources and Constraints 76Objectives 76Buyer Behavior 77Legal Environment 78Economic Environment 78Marketing and Technological Skills 78Environmental Context and Problem Definition 78

Management Decision Problem and

Marketing Research Problem 79

Defining the Marketing Research

Problem 80

Components of the Approach 83

Objective/Theoretical Framework 83Analytical Model 83Research Questions 84Hypotheses 85Specification of Information Needed 87

International Marketing Research 87

Ethics in Marketing Research 89

SPSS Windows 91

Summary 91 • Key Terms andConcepts 92 • Suggested Cases, VideoCases, and HBS Cases 93 • Live Research:Conducting a Marketing Research Project 94Acronym 94 • Exercises 94Internet and Computer Exercises 95Activities 95 • Dell Running Case 95

• VIDEO CASE 2.1 Accenture: The AccentIs in the Name 96

PART II Research DesignFormulation 99

Chapter 3 Research DesignObjectives 100

100

10 CONTENTS

Chapter 4

Overview 101

Research Design: Definition 102

Research Design: Classification 102

Exploratory Research 104

Descriptive Research 106Cross-Sectional Designs 108Longitudinal Designs 110Relative Advantages and Disadvantagesof Longitudinal and Cross-SectionalDesigns 111

Causal Research 113

Relationships Among Exploratory,

Descriptive, and Causal Research 114

Potential Sources of Error 117Random Sampling Error 117

Nonsampling Error 117

Budgeting and Scheduling the Project 119

Marketing Research Proposal 120

International Marketing Research 121

Ethics in Marketing Research 122

Summary 124 • Key Terms and

Concepts 124 • Suggested Cases, Video

Cases, and HBS Cases 125 • Live Research:

Conducting a Marketing Research Project 125

Acronym 125 • Exercises 126 • Internet

and Computer Exercises 126 •

Activities 126 • Dell Running Case 127

M VIDEO CASE 3.1 National FootballLeague: The King of ProfessionalSports 128

Exploratory Research Design:Secondary Data 130Objectives 130

Overview 131

Primary Versus Secondary Data 132

Advantages and Uses of Secondary

Data 133

Disadvantages of Secondary Data 133

Criteria for Evaluating SecondaryData 133

Specifications: Methodology Used to Collectthe Data 134

Error: Accuracy of the Data 135

Currency: When the Data Were Collected 135

Objective: The Purpose for Which the Data Were

Collected 135

Nature: The Content of the Data 136

Dependability: How Dependable Are the

Data? 136

Classification of Secondary Data 137

Internal Secondary Data 138

Database Marketing 138

Published External Secondary

Sources 140

Chapter 5

General Business Data 140

Government Sources 142

Computerized Databases 143Classification of Computerized Databases 143

Directories of Databases 145

Syndicated Sources of SecondaryData 145

Syndicated Data from Households 145Surveys 145

Purchase and Media Panels 150

Electronic Scanner Services 153

Syndicated Data from Institutions 154Retailer and Wholesaler Audits 154

Industry Services 156

Combining Information from Different

Sources: Single-Source Data 156

Computer Mapping 157

Buying Power Index 158

International Marketing Research 158

Ethics in Marketing Research 160

SPSS Windows 162

Summary 162 • Key Terms and

Concepts 163 • Suggested Cases, Video

Cases, and HBS Cases 163 • Live Research:

Conducting a Marketing Research Project 164

Acronym 164 • Exercises 164

Internet and Computer Exercises 165

Activities 165 • Dell Running Case 165

• VIDEO CASE 4.1 The Mayo Clinic:Staying Healthy w i t h Market ingResearch 166

Exploratory Research Design:Qualitative Research 168Objectives 168

Overview 169

Primary Data: Qualitative VersusQuantitative Research 170

Rationale for Using QualitativeResearch 172

A Classification of Qualitative ResearchProcedures 172

Focus Group Interviews 173Characteristics 174

Planning and Conducting Focus Groups 175

Other Variations in Focus Groups 180

Advantages of Focus Groups 181

Disadvantages of Focus Groups 181

Applications of Focus Groups 182

Online Focus Group Interviews 182

Advantages of Online Focus Groups 183

Disadvantages of Online Focus Groups 183

Uses of Online Focus Groups 184

Depth Interviews 185

Characteristics 185

Techniques 186

CONTENTS 11

Advantages and Disadvantages of DepthInterviews 188

Applications of Depth Interviews 188

Projective Techniques 189

Association Techniques 190

Completion Techniques 191

Construction Techniques 192

Expressive Techniques 193

Advantages and Disadvantages of ProjectiveTechniques 194

Applications of Projective Techniques 195

Analysis of Qualitative Data 196

Software Packages 197

International Marketing Research 198Ethics in Marketing Research 199Summary 202 • Key Terms and

Concepts 202 • Suggested Cases, Video

Cases, and HBS Cases 203 • Live Research:

Conducting a Marketing Research

Project 203 • Acronyms 203

Exercises 204 • Internet and Computer

Exercises 204 • Activities 204

Dell Running Case 205

• VIDEO CASE 5.1 Nike: Associat ing

Athletes, Performance,and the Brand 206

Chapter 6 Descriptive Research Design:Survey and Observation 208Objectives 208

Overview 209

Survey Methods 211

Survey Methods Classified by Mode ofAdministration 212

Telephone Methods 212

Traditional Telephone Interviews 212

Computer-Assisted TelephoneInterviewing 212

Personal Methods 214Personal In-Home Interviews 214

Mall-Intercept Personal Interviews 215

Computer-Assisted Personal Interviewing

(CAPI) 216

Mail Methods 217Mail Interviews 217

Mail Panels 218

Electronic Methods 218E-Mail Interviews 218

Internet Interviews 219

A Comparative Evaluation of Survey

Methods 221

Task Factors 221

Situational Factors 226

Respondent Factors 227

Some Other Survey Methods 228

Selection of Survey Methods 229

Chapter 7

Observation Methods 230

Structured Versus UnstructuredObservation 230

Disguised Versus Undisguised

Observation 230

Natural Versus Contrived Observation 230

Observation Methods Classified by Mode

of Administration 230

Personal Observation 231

Mechanical Observation 231

Audit 233

Content Analysis 233

Trace Analysis 235

A Comparative Evaluation of Observation

Methods 236

A Comparison of Survey and Observation

Methods 237

Relative Advantages of Observation 237

Relative Disadvantages of Observation 237

Ethnographic Research 238

Other Methods 238

International Marketing Research 238

Selection of Survey Methods 240

Ethics in Marketing Research 241Summary 242 • Key Terms andConcepts 243 • Suggested Cases, VideoCases, and HBS Cases 244 • Live Research:Conducting a Marketing ResearchProject 244 • Acronyms 244Exercises 244 • Internet and ComputerExercises 245 • Activities 245Dell Running Case 245

• VIDEO CASE 6.1 Starbucks: StayingLocal While Going Global ThroughMarketing Research 246

Causal Research Design:Experimentation 248Objectives 248

Overview 249

Concept of Causality 250

Conditions for Causality 250

Concomitant Variation 251

• Time Order of Occurrence of Variables 252

Absence of Other Possible Causal Factors 252

Role of Evidence 252

Definitions and Concepts 253

Definition of Symbols 254

Validity in Experimentation 254Internal Validity 254

External Validity 255

Extraneous Variables 255

History 255

Maturation 255

Testing Effects 256

Instrumentation 256

12 CONTENTS

Chapter 8

Statistical Regression 256

Selection Bias 256

Mortality 257

Controlling Extraneous Variables 257

Randomization 257

Matching 257

Statistical Control 257

Design Control 258

A Classification of Experimental

Designs 258

Preexperimental Designs 259One-Shot Case Study 259

One-Group Pretest-Posttest Design 259

Static Group Design 260

True Experimental Designs 260Pretest-Posttest Control GroupDesign 260

Posttest-Only Control Group Design 261

Quasi-Experimental Designs 262Time Series Design 262

Multiple Time Series Design 263

Statistical Designs 263Randomized Block Design 265

Latin Square Design 265

Factorial Design 266

Laboratory Versus Field

Experiments 267

Experimental Versus Nonexperimental

Designs 268

Limitations of Experimentation 269

Time 269

Cost 269

Administration 269

Application: Test Marketing 269

Standard Test Market 269

Controlled Test Market 271

Simulated Test Market 271

Electronic, Virtual, and Web-Enabled Test

Markets 271

International Marketing Research 272

Ethics in Marketing Research 272Summary 274 • Key Terms and

Concepts 275 • Suggested Cases, Video

Cases, and HBS Cases 275 • Live Research:

Conducting a Marketing Research

Project 276 B Acronym 276

Exercises 276 » Internet and Computer

Exercises 277 • Activities 277

Dell Running Case 277

• VIDEO CASE 7.1 AFLAC: Market ing

Research Quacks Like a Duck 278

Measurement and Scaling:Fundamentals and ComparativeScaling 280Objectives 280

Chapter 9

Overview 281

Measurement and Scaling 282

Scale Characteristics and Levels

of Measurement 282

Description 283

Order 283

Distance 283

Origin 283

Primary Scales of Measurement 284

Nominal Scale 284

Ordinal Scale 286

Interval Scale 286

Ratio Scale 288

A Comparison of Scaling Techniques 289

Comparative Scaling Techniques 289

Paired Comparison Scaling 289

Rank Order Scaling 291

Constant Sum Scaling 292

Q-Sort and Other Procedures 294

International Marketing Research 294

Ethics in Marketing Research 295

SPSS Windows 297

Summary 298 • Key Terms and

Concepts 299 • Suggested Cases, Video

Cases, and HBS Cases 299 • Live Research:

Conducting a Marketing Research

Project 299 • Acronyms 299

Exercises 300 • Internet and Computer

Exercises 300 a Activities 300

Dell Running Case 301• VIDEO CASE 8.1 Procter & Gamble:Using Marketing Research to BuildBrands 302

Measurement and Scaling:Noncomparative ScalingTechniques 304Objectives 304

Overview 305

Noncomparative Scaling Techniques 305

Continuous Rating Scale 306

Itemized Rating Scales 308

Likert Scale 308

Semantic Differential Scale 310

Stapel Scale 311

Noncomparative Itemized Rating Scale

Decisions 312

Number of Scale Categories 312

Balanced Versus Unbalanced Scales 312

Odd or Even Number of Categories 313

Forced Versus Nonforced Scales 313

Nature and Degree of Verbal Description 313

Physical Form or Configuration 313

Multi-Item Scales 316

Scale Evaluation 317

Measurement Accuracy 318

CONTENTS 13

Reliability 318Validity 320Relationship Between Reliabilityand Validity 321Generalizability 321

Choosing a Scaling Technique 322

Mathematically Derived Scales 322

International Marketing Research 322

Ethics in Marketing Research 323

SPSS Windows 325

Summary 326 • Key Terms andConcepts 327 • Suggested Cases, VideoCases, and HBS Cases 327 • Live Research:Conducting a Marketing ResearchProject 327 • Acronym 328Exercises 328 • Internet and ComputerExercises 328 • Activities 329Dell Running Case 329

• VIDEO CASE 9.1 eGO: ReinventingWheels 330

Chapter 10 Questionnaire and FormDesign 332Objectives 332

Overview 333

Questionnaires and Observation

Forms 334

Questionnaire Definition 335Objectives of a Questionnaire 335

Questionnaire Design Process 335

Specify the Information Needed 336

Type of Interviewing Method 337

Individual Question Content 338

Is the Question Necessary? 338Are Several Questions Needed Instead ofOne? 339

Overcoming Inability to Answer 339

Is the Respondent Informed? 340Can the Respondent Remember? 340Can the Respondent Articulate? 341

Overcoming Unwillingness to

Answer 341

Effort Required of the Respondents 341Context 342Legitimate Purpose 342Sensitive Information 342Increasing the Willingness ofRespondents 342

Choosing Question Structure 343

Unstructured Questions 343Structured Questions 344

Choosing Question Wording 346

Define the Issue 346Use Ordinary Words 347Use Unambiguous Words 347

Avoid Leading or Biasing Questions 348Avoid Implicit Alternatives 348Avoid Implicit Assumptions 348Avoid Generalizations and Estimates 349Dual Statements: Positive and Negative 349

Determining the Order of Questions 349

Opening Questions 349Type of Information 350Difficult Questions 350Effect on Subsequent Questions 350Logical Order 351

Form and Layout 352

Reproduction of the Questionnaire 353

Pretesting 354

Computer and Internet Questionnaire

Construction 356

Observational Forms 358

International Marketing Research 358

Ethics in Marketing Research 359

SPSS Windows 361

Summary 361 • Key Terms andConcepts 362 • Suggested Cases, VideoCases, and HBS Cases 362 • Live Research:Conducting a Marketing Research Project 363Acronyms 363 • Exercises 363Internet and Computer Exercises 365Activities 365 • Dell Running Case 365

• VIDEO CASE 10.1 Dunkin' Donuts:

Dunking the Competition 366

Chapter 11 Sampling: Design andProcedures 368Objectives 368Overview 369Sample or Census 370

The Sampling Design Process 372

Define the Target Population 372Determine the Sampling Frame 373Select a Sampling Technique 373Determine the Sample Size 374Execute the Sampling Process 375

A Classification of Sampling

Techniques 376

Nonprobability Sampling

Techniques 377

Convenience Sampling 377Judgmental Sampling 379Quota Sampling 380

Snowball Sampling 381

Probability Sampling Techniques 382

Simple Random Sampling 382Systematic Sampling 383Stratified Sampling 384Cluster Sampling 385Other Probability Sampling Techniques 387

14 CONTENTS

Choosing Nonprobability Versus

Probability Sampling 390

Uses of Nonprobability and Probability

Sampling 391

Internet Sampling 391

Issues in Online Sampling 391

Online Sampling Techniques 392

International Marketing Research 393

Ethics in Marketing Research 394

Summary 396 • Key Terms and

Concepts 397 • Suggested Cases, Video

Cases, and HBS Cases 397 • Live Research:

Conducting a Marketing Research Project 397

Acronym 397 • Exercises 398

Internet and Computer Exercises 398

Activities 398 • Dell Running Case 399

• VIDEO CASE 11.1 Motorola:Projecting the Moto Lifestyle 400

Chapter 12 Sampling: Final and InitialSample Size Determination 402Objectives 402

Overview 403

Definitions and Symbols 404

The Sampling Distribution 405

Statistical Approach to DeterminingSample Size 407

The Confidence Interval Approach 407

Sample Size Determination: Means 408

Sample Size Determination: Proportions 410

Multiple Characteristics andParameters 413

Other Probability SamplingTechniques 414

Adjusting the Statistically Determined

Sample Size 414

Calculation of Response Rates 415

Nonresponse Issues in Sampling 416

Improving the Response Rates 416

Adjusting for Nonresponse 419

International Marketing Research 421

Ethics in Marketing Research 422

SPSS Windows 423

Summary 423 • Key Terms and

Concepts 424 • Suggested Cases, Video

Cases, and HBS Cases 424 • Live Research:

Conducting a Marketing Research Project 425

Acronym 425 • Exercises 425

Internet and Computer Exercises 426

Activities 426 » Appendix 12A 426

Dell Running Case 428

• VIDEO CASE 12.1 Subaru: "Mr.Survey" Monitors CustomerSatisfaction 429

PART III Data Collection, Preparation,Analysis, and Reporting 431

Chapter 13 Fieldwork 432Objectives 432

Overview 433

The Nature of Fieldwork 434

Fieldwork/Data-Collection Process 434

Selection of Fieldworkers 434

Training of Fieldworkers 436

Making the Initial Contact 436

Asking the Questions 436

Probing 436

Recording the Answers 437

Terminating the Interview 437

Supervision of Fieldworkers 439

Quality Control and Editing 439

Sampling Control 439

Control of Cheating 439

Central Office Control 439

Validation of Fieldwork 439

Evaluation of Fieldworkers 439

Cost and Time 440

Response Rates 440

Quality of Interviewing 440

Quality of Data 440

International Marketing Research 441Ethics in Marketing Research 442SPSS Windows 444Summary 444 • Key Terms and

Concepts 445 • Suggested Cases, Video

Cases, and HBS Cases 446 • Live Research:

Conducting a Marketing Research

Project 446 • Acronyms 446

Exercises 446 • Internet and Computer

Exercises 447 • Activities 447

Dell Running Case 447• VIDEO CASE 13.1 Intel: BuildingBlocks Inside Out 448

Chapter 14 Data Preparation 450Objectives 450

Overview 451

The Data-Preparation Process 452

Questionnaire Checking 452

Editing 453

Treatment of Unsatisfactory Responses 454

Coding 454Coding Questions 454

Developing a Data File 456

Transcribing 459

Data Cleaning 461Consistency Checks 461

Treatment of Missing Responses 461

CONTENTS 15

Statistically Adjusting the Data 462

Weighting 462

Variable Respecification 463

Scale Transformation 464

Selecting a Data Analysis Strategy 465

A Classification of Statistical

Techniques 466

International Marketing Research 468

Ethics in Marketing Research 468

Statistical Software 471

SPSS and SAS Computerized DemonstrationMovies 471

SPSS and SAS Screen Captures with Notes 471

SPSS Windows 471

Creating a Variable Called OverallEvaluation 471

Recoding to Create New Variable CalledRecoded Income All

SAS Learning Edition 473

Creating a Variable Called Overall

Evaluation 473

Recoding to Create New Variable Called

Recoded Income 473

Summary 475 • Key Terms and

Concepts 476 • Suggested Cases, Video

Cases, and HBS Cases 477 • Live Research:

Conducting a Marketing Research

Project 477 • Acronym 477

Exercises 477 • Internet and Computer

Exercises 478 • "Activities 478

Dell Running Case 479

Chapter 15 Frequency Distribution, Cross-Tabulation, and HypothesisTesting 480Objectives 480

Overview 481

Frequency Distribution 484

Statistics Associated with Frequency

Distribution 486

Measures of Location 486

Measures of Variability 487

Measures of Shape 488

Introduction to Hypothesis Testing 489

A General Procedure for Hypothesis

Testing 489

Step 1: Formulate the Hypotheses 489

Step 2: Select an Appropriate Test 491

Step 3: Choose Level of Significance, a 491

Step 4: Collect Data and Calculate TestStatistic 492

Step 5: Determine the Probability (or CriticalValue) 492

Steps 6 and 7: Compare the Probability(or Critical Value) and Makethe Decision 492

Step 8: Marketing Research Conclusion 493

Chapter 16

Cross-Tabulations 493

Two Variables 494

Three Variables 495

General Comments on Cross-Tabulation 498

Statistics Associated with

Cross-Tabulation 498

Chi-Square 499

Phi Coefficient 500

Contingency Coefficient 501

Cramer's V 501

Lambda Coefficient 501

Other Statistics 502

Cross-Tabulation in Practice 502

Hypothesis Testing Related to

Differences 503

Parametric Tests 504

One Sample 504

Two Independent Samples 505

Paired Samples 508

Nonparametric Tests 509

One Sample 510

Two Independent Samples 510

Paired Samples 512

Statistical Software 515

SPSS and SAS Computerized DemonstrationMovies 516

SPSS and SAS Screen Captures with

Notes 516

SPSS Windows 516

SAS Learning Edition 518

Summary 520 • Key Terms and

Concepts 522 • Suggested Cases, Video

Cases, and HBS Cases 523 • Live Research:

Conducting a Marketing Research

Project 523 • Acronyms 524

Exercises 524 • Internet and Computer

Exercises 525 • Activities 526

• Dell Running Case 527

Analysis of Variance andCovariance 528Objectives 528

Overview 529

Relationship Among Techniques 531

One-Way Analysis of Variance 532

Statistics Associated with One-Way

Analysis of Variance 533

Conducting One-Way Analysis of

Variance 533

Identify the Dependent and Independent

Variables 533

Decompose the Total Variation 533

Measure the Effects 535

Test the Significance 535

Interpret the Results 536

16 CONTENTS

Illustrative Data 536

Illustrative Applications of One-WayAnalysis of Variance 537

Assumptions in Analysis of Variance 540

/V-Way Analysis of Variance 540

Illustrative Application of /V-Way Analysis

of Variance 542

Analysis of Covariance 545

Issues in Interpretation 545Interactions 545

Relative Importance of Factors 547

Multiple Comparisons 548

Repeated Measures ANOVA 548

Nonmetric Analysis of Variance 550

Multivariate Analysis of Variance 551

Statistical Software 552SPSS and SAS Computerized DemonstrationMovies 552

SPSS and SAS Screen Captures with

Notes 552

SPSS Windows 553

SAS Learning Edition 553Summary 555 • Key Terms and

Concepts 556 • Suggested Cases, Video

Cases, and HBS Cases 556 » Live Research:

Conducting a Marketing Research Project 556

Acronyms 556 • Exercises 557

Internet and Computer Exercises 558

Activities 558 • Dell Running Case 559

Chapter 17 Correlation and Regression 560Objectives 560

Overview 561

Product Moment Correlation 562

Partial Correlation 566

Nonmetric Correlation 568

Regression Analysis 568

Bivariate Regression 568

Statistics Associated with BivariateRegression Analysis 569

Conducting Bivariate RegressionAnalysis 569

Plot the Scatter Diagram 569

Formulate the Bivariate Regression

Model 571

Estimate the Parameters 572

Estimate Standardized Regression

Coefficient 573

Test for Significance 573

Determine the Strength and Significance of

Association 574

Check Prediction Accuracy 576

Assumptions 577

Multiple Regression 577

Chapter 18

Statistics Associated with MultipleRegression 578Conducting Multiple RegressionAnalysis 579

Partial Regression Coefficients 579

Strength of Association 580

Significance Testing 581

Examination of Residuals 582

Stepwise Regression 585

Multicollinearity 586

Relative Importance of Predictors 587

Cross-Validation 588

Regression with Dummy Variables 589

Analysis of Variance and Covariance with

Regression 589

Statistical Software 591SPSS and SAS Computerized DemonstrationMovies 592

SPSS and SAS Screen Captures with

Notes 592

SPSS Windows 592

SAS Learning Edition 593Summary 594 • Key Terms and

Concepts 596 • Suggested Cases, Video

Cases, and HBS Cases 596 • Live Research:

Conducting a Marketing Research

Project 597 • Acronym 597

Exercises 597 • Internet and Computer

Exercises 598 • Activities 599

Dell Running Case 599

Discriminant and LogitAnalysis 600Objectives 600

Overview 601

Basic Concept of DiscriminantAnalysis 602

Relationship of Discriminant and LogitAnalysis to ANOVA and Regression 603

Discriminant Analysis Model 603

Statistics Associated with DiscriminantAnalysis 604

Conducting Discriminant Analysis 605Formulate the Problem 605

Estimate the Discriminant FunctionCoefficients 607

Determine the Significance of the Discriminant

Function 609

Interpret the Results 610

Assess Validity of DiscriminantAnalysis 612

Multiple Discriminant Analysis 613Formulate the Problem 613

Estimate the Discriminant Function

Coefficients 614

CONTENTS 17

Chapter 19

Determine the Significance of the DiscriminantFunction 614

Interpret the Results 614

Assess Validity of Discriminant Analysis 617

Stepwise Discriminant Analysis 620

The Logit Model 620

Conducting Binary Logit Analysis 620

Formulate the Problem 621Estimating the Binary Logit Model 621Model Fit 622 Chapter 20

Significance Testing 622Interpretation of the Coefficients andValidation 622

An Illustrative Application of LogisticRegression 623

Statistical Software 626

SPSS and SAS Computerized DemonstrationMovies 626

SPSS and SAS Screen Captures withNotes 627

SPSS Windows 627

SAS Learning Edition 627

Summary 629 • Key Terms andConcepts 630 • Suggested Cases, VideoCases, and HBS Cases 631 • Live Research:Conducting a Marketing Research Project 631Acronym 631 • Exercises 631Internet and Computer Exercises 632Activities 632 « Dell Running Case 633

Factor Analysis 634Objectives 634

Overview 635

Basic Concept 636

Factor Analysis Model 637

Statistics Associated with Factor

Analysis 638

Conducting Factor Analysis 638

Formulate the Problem 639

Construct the Correlation Matrix 640

Determine the Method of Factor

Analysis 643 Chapter 21

Determine the Number of Factors 643

Rotate Factors 644

Interpret Factors 645

Calculate Factor Scores 646

Select Surrogate Variables 646

Determine the Model Fit 647

Applications of Common Factor

Analysis 649

Statistical Software 654SPSS and SAS Computerized DemonstrationMovies 654

SPSS and SAS Screen Captures withNotes 654

SPSS Windows 655

SAS Learning Edition 655

Summary 656 • Key Terms andConcepts 657 • Suggested Cases, VideoCases, and HBS Cases 657 • Live Research:Conducting a Marketing ResearchProject 657 • Acronym 658Exercises 658 » Internet and ComputerExercises 658 • Activities 659Dell Running Case 659

Cluster Analysis 660Objectives 660

Overview 661

Basic Concept 662

Statistics Associated with Cluster

Analysis 663

Conducting Cluster Analysis 664

Formulate the Problem 664

Select a Distance or Similarity Measure 665

Select a Clustering Procedure 666

Decide on the Number of Clusters 670

Interpret and Profile the Clusters 672

Assess Reliability and Validity 673

Applications of Nonhierarchical

Clustering 674

Applications of TwoStep Clustering 676

Clustering Variables 679

Statistical Software 681SPSS and SAS Computerized DemonstrationMovies 681

SPSS and SAS Screen Captures with Notes 681

SPSS Windows 681

SAS Learning Edition 682

Summary 683 • Key Terms andConcepts 684 • Suggested Cases, VideoCases, and HBS Cases 685 • Live Research:Conducting a Marketing ResearchProject 685 • Acronym 685Exercises 685 • Problems 686Internet and Computer Exercises 686Activities 686 • Dell Running Case 687

Multidimensional Scalingand Conjoint Analysis 688Objectives 688

Overview 689

Basic Concepts in MultidimensionalScaling (MDS) 691

Statistics and Terms Associated with

MDS 691

Conducting Multidimensional

Scaling 692

Formulate the Problem 692

Obtain Input Data 692

Select an MDS Procedure 694

Decide on the Number of Dimensions 695

18 CONTENTS

Chapter 22

Label the Dimensions and Interpret theConfiguration 696

Assess Reliability and Validity 697

Assumptions and Limitations of

MDS 698

Scaling Preference Data 698

Correspondence Analysis 700

Relationship Among MDS, Factor Analysis,

and Discriminant Analysis 701

Basic Concepts in Conjoint Analysis 701

Statistics and Terms Associated with

Conjoint Analysis 702

Conducting Conjoint Analysis 702

Formulate the Problem 702

Construct the Stimuli 703

Decide on the Form of Input Data 705

Select a Conjoint Analysis Procedure 705

Interpret the Results 708

Assessing Reliability and Validity 708

Assumptions and Limitations of Conjoint

Analysis 711

Hybrid Conjoint Analysis 711

Statistical Software 714

SPSS and SAS Computerized DemonstrationMovies 715

SPSS and SAS Screen Captures with

Notes 715

SPSS Windows 715

SAS Learning Edition 716

Summary 717 • Key Terms and

Concepts 718 • Suggested Cases, Video

Cases, and HBS Cases 719 • Live Research:

Conducting a Marketing Research Project 720

Acronyms 720 • Exercises 720

Internet and Computer Exercises 720

Activities 721 » Dell Running Case 721

Structural Equation Modelingand Path Analysis 722Objectives 722

Overview 723

Basic Concept 724

Statistics Associated with SEM 725

Foundations of SEM 726

Theory, Model, and Path Diagram 726

Exogenous Versus EndogenousConstructs 727

Dependence and CorrelationalRelationships 728

Model Fit 728

Model Identification 728

Conducting SEM 729

Define the Individual Constructs 729

Specify the Measurement Model 729

Sample Size Requirements 730

Chapter 23

Assess Measurement Model Reliability

and Validity 731

Assess Measurement Model Fit 731

Assess Measurement Model Reliability andValidity 733

Lack of Validity: Diagnosing

Problems 735

Specify the Structural Model 735

Assess Structural Model Validity 736

Assessing Fit 737

Comparison with Competing Models 737

Testing Hypothesized Relationships 737

Structural Model Diagnostics 737

Draw Conclusions and Make

Recommendations 738

Higher-Order Confirmatory Factor

Analysis 738

Relationship of SEM to Other Multivariate

Techniques ,739

Application of SEM: First-Order Factor

Model 740

Define the Individual Constructs 740

Specify the Measurement Model 740

Assess Measurement Model Reliability andValidity 741

Specify the Structural Model 742

Assess Structural Model Validity 742

Conclusions and Recommendations 742

Application of SEM: Second-Order Factor

Model 742

Define the Individual Constructs 742

Specify the Measurement Model 743

Assess Measurement Model Reliability and

Validity 743

Specify the Structural Model 745

Assess Structural Model Validity 746

Draw Conclusions and Make

Recommendations 747

Path Analysis 748

Illustrative Example of Path Analysis 749

Statistical Software 751

LISREL 751

SPSS Windows 752

SAS Learning Edition 753

Summary 754 • Key Terms and

Concepts 756 • Suggested Cases, Video

Cases, and HBS Cases 756 • Live Research:

Conducting a Marketing Research Project 756

Acronym 756 • Exercises 756

Internet and Computer Exercises 757

Activities 757 • Dell Running Case 757

Report Preparation andPresentation 758Objectives 758

Overview 759

CONTENTS 19

Importance of the Report andPresentation 760

The Report Preparation and Presentation

Process 760

Report Preparation 761

Report Format 761

Title Page 762

Letter of Transmittal 763

Letter of Authorization 763

Table of Contents 763

Executive Summary 763

Problem Definition 763

Approach to the Problem 763

Research Design 763

Data Analysis 763

Results 763

Limitations and Caveats 764

Conclusions and Recommendations 764

Report Writing 764

Readers 765

Easy to Follow 765

Presentable and Professional

Appearance 765

Objective 765

Reinforce Text with Tables and Graphs 765

Terse 765

Guidelines for Tables 765

Title and Number ,766

Arrangement of Data Items 766

Basis of Measurement 766

Leaders, Rulings, and Spaces 766

Explanations and Comments: Headings, Stubs,and Footnotes 766

Sources of the Data 766

Guidelines for Graphs 766

Geographic and Other Maps 767

Round or Pie Charts 767

Line Charts 767

Pictographs 767

Histograms and Bar Charts 767

Schematic Figures and Flowcharts 768

Report Distribution 769

Oral Presentation 771

Reading the Research Report 772

Address the Problem 772

Research Design 772

Execution of the Research Procedures 772

Numbers and Statistics 772

Interpretation and Conclusions 773

Generalizability 773

Disclosure 773

Research Follow-Up 773Assisting the Client 773

Evaluation of the Research Project 774

International Marketing Research 774

Ethics in Marketing Research 775

Statistical Software 776

SPSS Windows 776

SASS Enterprise Guide 777

Summary 777 • Key Terms andConcepts 777 • Suggested Cases, VideoCases, and HBS Cases 777 » Live Research:Conducting a Marketing ResearchProject 779 • Acronyms 779Exercises 779 • Problems 780Internet and Computer Exercises 780Activities 780 • Dell RunningCase 780

• VIDEO CASE 23.1 Marriott: MarketingResearch Leads to ExpandedOfferings 781

Chapter 24 International MarketingResearch 784Objectives 784

Overview 785

Marketing Research Goes

International 787

A Framework for International Marketing

Research 788

The Environment 788

Marketing Environment 788

Government Environment 789

Legal Environment 790

Economic Environment 790

Structural Environment 790

Informational and Technological

Environment 790

Sociocultural Environment 790

Survey Methods 792

Telephone Interviewing and CATI 792

In-Home Personal Interviews 793

Mall Intercept and CAPI 793

Mail Interviews 794

Mail and Scanner Panels 794

Electronic Surveys 794

Measurement and Scaling 795

Questionnaire Translation 797

Ethics in Marketing Research 799

Statistical Software 800

Summary 800 • Key Terms and

Concepts 801 • Suggested Cases, Video

Cases, and HBS Cases 801 • Live

Research: Conducting a Marketing Research

Project 801 • Acronym 801

Exercises 802 • Internet and Computer

Exercises 802 • Activities 802

Dell Running Case 803

• VIDEO CASE 24.1 Nivea: MarketingResearch Leads to Consistencyin Marketing 804

20 CONTENTS

RUNNING CASE WITH REAL DATA

CASE 1.1 Dell Direct 806

COMPREHENSIVE CRITICAL THINKING CASES

CASE 2.1 Hong Kong: Staying Aheadof the Competition in the WealthManagement Business 812

CASE 2.2 Baskin-Robbins: Can It Bask in theGood'Ole Days? 815

CASE 2.3 Kid Stuff? Determining the BestPositioning Strategy for AkronChildren's Hospital 818

DATA ANALYSIS CASES WITH REAL DATA

CASE 3.1 AT&T Wireless: Ma Bell Becomes

Ma Again 820

CASE 3.2 IBM: The World's Top Providerof Computer Hardware, Software,

and Services 825

CASE 3.3 Kimberly-Clark: CompetingThrough Innovation 833

COMPREHENSIVE CASES WITH REAL DATA

CASE 4.1 JPMorgan Chase: Chasing GrowthThrough Mergers andAcquisitions 840

CASE 4.2 Wendy's: History and Life AfterDave Thomas 846

COMPREHENSIVE HARVARD BUSINESS SCHOOL CASES

CASE 5.1: The Harvard Graduate Student

Housing Survey (9-505-059) 853

CASE 5.2: BizRate.Com (9-501-024) 853

CASE 5.3: Cola Wars Continue: Coke andPepsi in the Twenty-First Century(9-702-442) 853

CASE 5.4: TiVo in 2002 (9-502-062) 853

CASE 5.5: Compaq Computer: Intel Inside?

(9-599-061) 853

CASE 5.6: The New Beetle (9-501-023) 853

Appendix: Statistical Tables 854Notes 866Photo Credits 907Index 909